Bipartisan bill must be passed by end of the year to level the retail playing field

Arlington
,
VA
-
12/3/2012

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In a letter
sent today, the Retail Industry Leaders Association (RILA) urged
Congress to level the retail playing field and pass the Marketplace Fairness
Act before the end of the year.

“Online-only retailers have
taken advantage of this decades-old loophole long enough and it is time for
Congress to end this special treatment,” said Bill Hughes, RILA’s
senior vice president for government affairs. “Government shouldn’t be picking
winners and losers by giving online retailers a competitive advantage. The time
for a true free market is now.”

“Governor’s from across
the political spectrum support a level playing field for all retailers, and I
expect many of them will urge Congressional leadership and the White House to
tackle this problem once and for all.”

“In the wake of a long and
divisive election, the Marketplace Fairness Act presents a unique opportunity
to show the American people that our problems can indeed be solved when both
parties work together where there is common ground.”

“Congress should make this
the last holiday season retailers are forced to compete on an uneven playing
field.”

RILA is the trade association of
the world’s largest and most innovative retail companies. RILA members include
more than 200 retailers, product manufacturers, and service suppliers, which
together account for more than $1.5 trillion in annual sales, millions of
American jobs and more than 100,000 stores, manufacturing facilities and
distribution centers domestically and abroad.

###

December 3, 2012

United States Senate
Washington, D.C. 20510

Dear Senator:

On behalf of the Retail Industry
Leaders Association (RILA), I write to urge you pass the Marketplace Fairness
Act before the end of the year. E-fairness legislation, sponsored by Senators
Mike Enzi, Richard Durbin, and Lamar Alexander, would close the decades-old
loophole enjoyed by online-only retailers that has allowed them to evade
collection of state sales taxes. This practice has given e-tailers an
artificial edge over brick and mortar retailers, putting hundreds of thousands
of Main Street retailers at a competitive disadvantage. Ending the special
treatment afforded these companies will restore free market principles and end
what amounts to government-sanctioned special treatment for online-only
retailers that is simply unjustified in the modern marketplace.

By way of background, RILA is the trade association of the world’s largest and
most innovative retail companies. RILA members include more than 200 retailers,
product manufacturers, and service suppliers, which together account for more
than $1.5 trillion in annual sales, millions of American jobs and more than
100,000 stores, manufacturing facilities and distribution centers
domestically and abroad.

The Marketplace Fairness Act will
return to the states the authority to manage their sales tax laws while
providing a simplified system for state collection authority. In order to
qualify, a state must implement a system that meets four minimum requirements:
a robust small business exemption; a consistent rate throughout the state; a
uniform tax base for the state; and, centralized filing and remittance. This
sort of simplification has been long sought, and renders moot the assertion
made by a select few that closing the sales tax loophole will create an
excessive burden for online-only sellers.

This legislation enjoys broad
bipartisan support within Congress and has the backing of groups like the
National Governors Association and the National Conference of State
Legislators. In the wake of a long and divisive election, the Marketplace
Fairness Act presents a unique opportunity to show the American people that our
problems can indeed be solved when both parties work together where there is
common ground.

On behalf of America’s leading
retailers, I strongly urge your support for the Marketplace Fairness Act.
Make this the last holiday season retailers are forced to compete on an uneven
playing field.